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Blog: On-line dynamic discounting – a new tool for our suppliers to improve cash flow control

Improving working capital and reducing the need for external funding is in the interest of all business parties. To help in this quest, Metso has introduced a new win-win dynamic discounting solution for its suppliers.

The dynamic discounting solution is an innovative new financing tool which is especially beneficial to small and medium sized suppliers. It complements well our supply chain finance program which was launched some time ago for the bigger spend suppliers. With these two solutions in place, all our suppliers have access to flexible financing options that help improve their cash flow visibility and control.

The dynamic discounting platform is optional, easy to use and enables our suppliers to get an early payment of approved invoices when needed for the invoices wanted. In addition, visibility is improved since all invoices are shown online once approved Metso. As this is not a factoring service or bank financing, usage of the service is free.

On the website, the supplier can make an offer for invoice early payment at the discounting rate that works best for them. In return, Metso pays less, thanks to cash discounts from the supplier. In practice, the supplier proposes the discount rate for the approved invoices to be paid early and then Metso either approves or rejects the proposal. When the offers are accepted by Metso, the invoices are paid early to the supplier by Metso using our usual payment process.

How can I participate?

Enrolling in the system is easy:

You will receive an invitation from Metso and the solution partner C2FO® to join the Dynamic Discounting program, which utilizes an online, secure marketplace.

You will then get an email from C2FO with instructions how to register your account. Their customer support representatives will reach out to you to schedule a convenient time to discuss whether this would be beneficial for you.

Once you have set up your account, you can start using the system. It takes only a couple of clicks to discount approved invoices or even to set up automated discounting for all future approved invoices.

The tool is fully web-based and there is no need to install any software locally. C2FO also provides a Metso-dedicated email address and phone number to provide quick assistance with any questions.

C2FO has provided dynamic discounting services to global companies and their suppliers since 2010 with over USD 100 billion payments settled via the platform to date. Metso’s roll-out in 2017 will take place in Finland, Sweden, Germany and the UK, followed by other countries shortly afterwards.

A list of some reference clients is available at their website www.c2fo.com.